XRP is currently trading near $3.16 with about $8 billion in market cap, despite a 14% drop over the past week. The token is showing resilience, sitting above key technical averages, but recent large token activity is drawing renewed scrutiny.
Ripple co-founder Chris Larsen has offloaded over 100 million XRP tokens, worth around $200 million, during the recent price dip, adding pressure to the already shaky market. XRP fell by nearly 20%, touching $3.18 as of July 23. While some see this as a routine move, analysts warn that such large-scale selling, especially during market pullbacks, can worsen price drops.
Larsen still holds a massive 2.58 billion XRP (about $7.9 billion), and experts like CryptoQuant’s J.A. Maartun believe more sales could be coming. This has raised concerns about how much influence major holders like Larsen have on XRP’s price action.
Analysts tracked about $140 million of that going through centralized platforms, often a signal of forthcoming sales. XRP fell from its $3.66 high to below $3.16 in the same week.
This isn’t Larsen’s first liquidation spree; he’s sold over 107 million XRP (valued at about $3.3 billion) since November. His fellow co-founder, Jed McCaleb, completed his orderly exit in 2022, but Larsen’s continued activity keeps pressure on market sentiment.
Some observers see this pattern as strategic profit-taking built into the token’s early structure. Major seller activity near all-time highs, but not coordinated dumping, is historically normal for founder-held coins. Still, the scale raises concerns around micro-market influence.
While critics cite the founder’s selling as a trigger for recent weakness, others point to broader market trends driving the pullback. Legal expert Bill Morgan dismissed the idea that one person is tanking the market, citing macro forces and regulatory anxiety instead.
Even after large withdrawals, technical indicators show support near $2.25 to $3.00, and XRP is consolidating around $3.10-$3.16, a balance point where both bulls and bears are active.
Bitcoin dominance has slipped to around 59–61%, a sign that money is rotating into tokens like XRP, SOL, and Dogecoin, which have recovered strong gains.
Technical setups show room to move upward from current support levels, with a break above $3.66 potentially triggering renewed buying up toward resistance near $3.81. Institutional demand remains steady, with open interest in XRP futures climbing steadily.
With founder sales still possible, investors are watching how markets absorb liquidity. If XRP can reclaim $3.31 and bounce off support, traders may view recent declines as short-term noise. If not, deeper correction toward $2.25 or below could follow.
Chris Larsen sold over 100M XRP during a price dip, possibly as strategic profit-taking, raising market concerns.
Analysts say more sales are likely, as Larsen still holds 2.58B XRP worth $7.9B, impacting market sentiment.
Large founder sales during dips can increase downward pressure, though some analysts cite broader market trends.
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